Last week, I posted a link to our affiliate site SaveSome Solutions. There, we have compiled in-depth merchant credit card processing information in our "education center." The information is second-to-none, I assure you. But what if you are like me-and just don't have time to read all that stuff? If you fall into the category of "too busy to learn the intricacies of merchant accounts" you are not alone. In fact, other Merchant Processors count on those of us who can't speak their coded language, and don't have time to learn. So to make it a little easier, I have summed it up--in layman's terms--and illustrated my point with golf clubs.
"Interchange" is what Visa/Mastercard charges a merchant, aka, a business owner, to move money from a customer's account to their own when a purchase is made. If you are a shopper, you should know that when you use your debit card to buy those great golf clubs from Dick's Sporting Goods for $199, Dick's has to give a percentage of that straight to Visa/Mastercard (1.1225% + a .15 cent transaction fee for those of you who like math).
As if that weren't enough, Dick's also has to give a kick-back to the company...known as a Merchant Processor...who works as an intermediary. Remember the old movies where Sue calls Randy, but first she has to call the operator and ask to be connected? A merchant processor is essentially that; an operator, and we need to get paid for our services too. Which means Dick's is responsible for that fee as well. Let's say Dick's uses one of the many greedy Merchant Processors to make the connection when they "call" Visa/Mastercard. Dick's could end up paying an additional 3 or even 4% MORE in "batch fees," "authorization fees," "statement fees," "Executive car-wash fees..." and the list goes on. And if the golf club buyer wants to use a credit card, one where he/she earns rewards or cash back on purchases--Dick's pays even MORE to the Merchant Processor. Each fee, each seemingly little charge, reduces the profit Dick's makes on those golf clubs.
As if that weren't enough, Dick's also has to give a kick-back to the company...known as a Merchant Processor...who works as an intermediary. Remember the old movies where Sue calls Randy, but first she has to call the operator and ask to be connected? A merchant processor is essentially that; an operator, and we need to get paid for our services too. Which means Dick's is responsible for that fee as well. Let's say Dick's uses one of the many greedy Merchant Processors to make the connection when they "call" Visa/Mastercard. Dick's could end up paying an additional 3 or even 4% MORE in "batch fees," "authorization fees," "statement fees," "Executive car-wash fees..." and the list goes on. And if the golf club buyer wants to use a credit card, one where he/she earns rewards or cash back on purchases--Dick's pays even MORE to the Merchant Processor. Each fee, each seemingly little charge, reduces the profit Dick's makes on those golf clubs.
But Dick's can't afford to reduce profit margins by 4-5% and expect to stay in business, right? So they have no choice but to pass this on to the shopper. Sure, the golf clubs are a steal at $199, but in this day and age-wouldn't it be great to get them cheaper? Wouldn't it be great if Dick's used Swipe-Rite for Merchant Processing, took advantage of our "Fee Free" Interchange-Plus pricing, and passed the savings along to their loyal customers?
Swipe-Rite specializes in the transparent structure of Interchange-Plus, also known as "cost-plus" pricing. That means that instead of paying exorbitant fees, the rates of which are impacted by (seemingly) everything from the weather to the time of day, Dick's (and every other merchant) would pay a single, low flat-rate no matter what. There are no monthly minimums, no batch/authorization or swipe fees, and we pay for our own car washes (company consensus is that Guppy's Auto Spa in Cedar Rapids is our favorite).
If Dick's Sporting Goods used Swipe-Rite, those golf clubs could go on sale. Dick's would increase their bottom line and their customer flow. And the proud new golf-club owner could afford golf lessons, to boot.
Interested in learning more? I love to answer questions, ask me here: @AmySwipeRite
Swipe-Rite specializes in the transparent structure of Interchange-Plus, also known as "cost-plus" pricing. That means that instead of paying exorbitant fees, the rates of which are impacted by (seemingly) everything from the weather to the time of day, Dick's (and every other merchant) would pay a single, low flat-rate no matter what. There are no monthly minimums, no batch/authorization or swipe fees, and we pay for our own car washes (company consensus is that Guppy's Auto Spa in Cedar Rapids is our favorite).
If Dick's Sporting Goods used Swipe-Rite, those golf clubs could go on sale. Dick's would increase their bottom line and their customer flow. And the proud new golf-club owner could afford golf lessons, to boot.
Interested in learning more? I love to answer questions, ask me here: @AmySwipeRite
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